f i nanc i a l i nc lu s i on i n i nd i a
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covered and the low volumes, which have translated into
unaffordable costs. It is imperative to bring down the cost
to an affordable level and to improve the reach to the
remote corners of the country by effectively leveraging
technology. Some of the major technology products
proposed to be used under the National Mission on
Financial Inclusion are:
(i) Electronically Know Your Customer (e-KYC): This
is a paperless procedure to make the account open-
ing of customers having Aadhar numbers much
easier and would be used on a large-scale for open-
ing accounts in future.
(ii) Transactions through Mobile Banking: The number
of mobiles in India today is estimated to be 886
million. Around one-fourth of the mobile users
are residing in villages and small towns. Mobile
telephony and pre-paid wallets would also be used
for coverage of households under the financial
inclusion campaign.
(iii) Immediate Payment Service (IMPS): IMPS was
launched by NPCI in November 2010. It offers an
instant, 24×7, inter-bank electronic fund transfer
service through mobile phones as well as internet
banking and ATMs.
(iv) Micro-ATMs: Low-cost micro-ATMs would be
deployed at each Bank Mitr location to enable
instant deposit and withdrawal of funds. This
device will be based on a mobile phone connection
and made available to every BC. The facility will
be operated from the cash drawer of the BC.
Essentially the Bank Mitrs will act as the bank for
the customers. The micro-ATM offer an online
inter-operable, low-cost payment platform to
everyone in the country.
(v) National Unified USSD Platform (NUUP):
Though very interactive, mobile banking apps
need to be downloaded and installed on the mobile
phone. To resolve this issue, an alternative solution
is available on the USSD platform. Customers can
avail USSD solution through any mobile phone
on GSM network, irrespective of the make and
model of the phone. Key services that NUUP will
offer include: inter-bank account-to-account fund
transfer, balance inquiry, mini statement besides a
host of other services.
(vi) RuPay Debit Cards: RuPay is a new card payment
scheme launched by the NPCI. The benefits of the
RuPay debit card are the flexibility of the product
platform, the high level of acceptance and the
strength of the RuPay brand. Its main features are:
(a) lower cost and affordability: (b) customized
product offering; (c) protection of information
of consumers; (d) provision of electronic product
options.
(vii) Aadhar-enabled payment systems (AEPS): AEPS
is a banking product which allows online inter-
operable financial inclusion transactions at the PoS
(micro ATM) or kiosk banking through the BCs
of any bank using the Aadhar authentication. Four
basic types of Aadhar-enabled banking transactions
are available: balance enquiry; cash withdrawal;
cash deposit and Aadhar to Aadhar funds transfer.
(viii) Aadhar Payments Bridge System (APBS): The
Aadhar payment bridge system enables the transfer
of payments from government to Aadhar-enabled
accounts of beneficiaries at banks and post offices.
Every government department or institution that
sends EBT and DBT/DBTL payments to individu-
als needs to prepare a file containing the Aadhar
number and amount and submit it to their accred-
ited bank.
8. Monitoring
A web portal shall be created by DFS at ‘financialservices.
gov.in’ for online monitoring of the creation of Bank Mitr
(Business Correspondent). In the field, it shall be the tool
to ensure proper coverage of villages. Each bank would
have a structured system generated MIS system to moni-
tor the function of Bank Mitr in the field. The format
would be standardized across the system for ease and uni-
formity purposes. It was decided to link the lady of the
house as head of the household with the other members
in the CBS so that the number of the households that are
covered during the campaign could be ascertained.
9. Challenges Identified in the Implementation
of the Mission
(i) Telecom Connectivity: In the tribal and hilly areas
of the country the telecom network is not reliable.
